Excel Latin America Bond Fund announces exercise of over-allotment option
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./
TORONTO, July 9, 2012 /CNW/ - Excel Funds Management Inc. (the "Manager") is pleased to announce that the syndicate of agents for the initial public offering of Excel Latin America Bond Fund (the "Fund") has exercised its over-allotment option and acquired an additional 207,302 Class A Units of the Fund. In aggregate, the Fund raised gross proceeds of approximately $36 million from the sale of 3,007,302 Class A Units and 584,990 Class F Units, each at a price of $10.00 per Unit. The Class F Units are designed for fee-based accounts and are convertible into Class A Units on a monthly basis. The Class A Units are listed on the Toronto Stock Exchange under the symbol ELA.UN.
The Fund's investment objectives are to (i) provide quarterly tax-advantaged distributions consisting primarily of returns of capital; and (ii) preserve and provide the opportunity to increase the net asset value of the Fund, in each case, through exposure to an actively managed, diversified portfolio held by ELA Trust consisting primarily of U.S. dollar denominated fixed income securities issued by companies located in Latin America, with an initial focus on Brazil. The initial distribution target for the Fund is expected to be $0.19375 per Unit per quarter ($0.775 per annum, to yield 7.75% on the subscription price of $10.00 per Unit), consisting primarily of returns of capital which are not immediately taxable but which reduce a Unitholder's adjusted cost base of its Units. Excel Investment Counsel Inc. (the "Portfolio Manager") intends to hedge substantially all of the value of the portfolio to the Canadian dollar.
The Manager and the Portfolio Manager are part of the Excel group, a Canadian pioneer in emerging market mutual fund investing, which manages 12 investment funds focused on the emerging markets, the largest product line-up in the asset class across Canada.
BTG Pactual acts as sub-advisor for ELA Trust in connection with the selection, purchase and sale of portfolio securities and other assets of the portfolio. The sub-advisor is one of Latin America's leading independent asset managers and had over U.S.$45 billion in assets under management as at December 31, 2011.
The syndicate of agents for the offering was co-led by BMO Capital Markets, CIBC and RBC Capital Markets and includes TD Securities Inc., GMP Securities L.P., Raymond James Ltd., Desjardins Securities Inc., Macquarie Private Wealth Inc., Dundee Securities Ltd., Mackie Research Capital Corporation, Manulife Securities Incorporated, Sherbrooke Street Capital (SSC) Inc. and Union Securities Ltd.
Commissions, management fees and expenses all may be associated with investment funds. Please read the Fund's publicly filed documents which are available on SEDAR at www.sedar.com. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to the future outlook of the Fund and anticipated distributions, events or results and may include statements regarding the future financial performance of the Fund. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "anticipate", "believe", "intend" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities within the United States.For further information:
For further information, please contact your financial advisor, call our investor relations line at 1-888-813-9813 or visit our website at www.excelfunds.com.
Chief Compliance Officer
Excel Funds Management Inc.